Low-Volatility

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Slow and steady wins the race. Investors seeking an exchange traded fund strategy that can produce attractive risk-adjusted returns over the long haul should take a look at the low-volatility theme. “Imagine a race between a speedy, boastful hare and a steady, quiet tortoise,” Andrew Ang, Head of BlackRock‘s Factor Based Strategies Group, mused in […]

In a year marked by wider market oscillations, investors are filling their core portfolio positions with low-volatility exchange traded fund strategies. Investors have funneled over $5 billion into low-volatility ETFs globally over the first two months of the year, including a record $3.9 billion in February, reports Jackie Noblett for Ignites. Low-vol ETF strategies continue […]

Expanding on its line of volatility weighted options, Victory Capital has rounded out its smart-beta suite with an exchange traded fund that tracks the emerging markets. The Victory CEMP Emerging Market Volatility Wtd Index ETF (NasdaqGM: CEZ) began trading Wednesday, March 23, according to a press release. CEZ has a 0.50% expense ratio. CEZ will try […]

ETF industry continued to accumulate assets in February Global exchange traded products, which include both ETFs and exchange traded notes, gathered $9.4 billion Garnering investors’ attention over February, ETFs that track gold price movements saw a new monthly flow record of $7.2 billion The exchange traded fund industry continued to accumulate assets in February on […]

Each week ETF Trends publisher Tom Lydon (above right) discusses “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, Tom looks at the Legg Mason Low Volatility High Dividend ETF (NasdaqGM: LVHD). LVHD can help investors generate attractive yields and diminish […]

Many believed this would be the year that active stock pickers and mutual fund managers could choose their battles to generate alpha. However, the majority of active managers continued to underperform benchmark indices, bolstering the case for passive index-based exchange traded funds. Goldman Sachs analysis found that over the first two months of the year, […]

Dan Draper, Managing Director of Global ETFs at PowerShares, joined Tom Lydon, ETF Trends Publisher, at the Inside ETFs conference to go over some exchange traded fund strategies that investors are putting to work. For instance, the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), which tracks the 100 least volatile stocks on the S&P […]

In a market downturn, traditional beta indices can suffer as their  market capitalization weighting methodology leans toward the best performers. Alternatively, exchange traded fund investors may turn to factor-based or smart-beta indexing strategies to potentially diversify the risks. “The end of a market bubble is never pleasant, but it can be especially painful for investors […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV). With the markets swinging, investors may be better off in a stock ETF that […]

The markets are likely in for a volatile year. Nevertheless, exchange traded fund investors have a few options to help diminish portfolio risks and help hedge against the swings. Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions Business at BlackRock, attributes the market volatility to a number of factors, […]

With the equities markets experiencing one of their worst stumbles in years, exchange traded fund investors may turn to low-volatility strategies that could help hedge the risks and diminish a portfolio’s swings. “Low volatility is one of the few factors that have historically performed well in turbulent markets,” according to a MSCI research note, Constructing […]

Investors who still want their foot in the market but are wary of volatility weighing on their portfolios can turn to low-volatility exchange traded fund strategies that could generate more attractive risk-adjusted returns. For instance, investors can utilize something like the iShares MSCI USA Minimum Volatility ETF (NYSEArca: USMV), which selects stocks based on variances […]

As people go bargain hunting after the recent selling pressure, investors should consider exchange traded funds that track small capitalization-weighted stocks, which have typically outperformed at the start of a new year. According to financial data provider Kensho, small-cap stocks have returned more than large-cap companies in the first quarter for the past two decades, […]

With markets experiencing wider oscillations, low-volatility exchange traded funds are outperforming traditional broad equity market bets. As witnessed this week, international events may still trigger market volatility, notably the recent sell-off in Chinese markets. The CBOE Volatility Index and VIX-related exchange traded products also spiked Thursday after a quick plunge in Chinese markets triggered selling […]

Investors seeking to expand their portfolios beyond U.S. markets may look to international exchange traded funds. When deciding to allocate toward overseas markets, investors can look to the FTSE Global All Cap Index as a guide. Alex Bryan, an analyst covering equity strategies at Morningstar, points out that U.S. markets make up 53% of the […]

Seasoned fund industry player Legg Mason Inc. (NYSE: LM) has launched four smart-beta or alternative index-based exchange traded funds that bring institutional styled strategies to retail investors. The new Legg Mason ETFs highlight the importance of risk management, especially during the current environment of heightened volatility. For instance on Monday, the huge 7% sell-off in […]

The exchange traded fund industry continues to expand its product line, providing investors with a growing number of strategies to customize and maximize their portfolios. According to XTF data, there are now 1,843 exchange traded products, which include exchange traded funds and exchange traded notes, with $2.15 trillion in assets under management. Fund sponsors launched […]

Investors seeking a more stable asset category may want to take a look at infrastructure stocks and sector-related exchange traded funds. “Good infrastructure products are unlikely to wildly outperform equity markets – but nor are they likely to create serious losses in a portion of investors’ portfolios that should be defensive,” writes Thomas Hoops, executive vice […]

A tumultuous year for the equities market has pushed more investors into low-volatility exchange traded fund strategies that try to diminish the swings. The BlackRock (NYSE: BLK) iShares minimum volatility suite has attracted $7 billion in net inflows this year and now hold about $15 billion in assets under management, reports James Comtois for Pensions […]

Investors can utilize a growing number of exchange traded funds that implement alternative indexing methodologies to diminish market risks and potential limit the impact of another bubble. James Norman, president of QS Investors, a Legg Mason affiliate, explains how market inefficiencies may lead to increased risk in the markets. “An example of market inefficiency is […]

Despite risks in some of the more volatile regions of the global markets, investors may want to position for further strength in emerging market exchange traded funds. Technical indicators indicate that positioning in emerging markets has turned more positive, according to a Deutsche Bank Markets Research note. “ETF inflows, lower borrow rates, and futures trading […]

After the recent market swings, many are wary of volatility ahead. Nevertheless, investors who still want high dividends but are also concerned about ongoing risks may turn to low-volatility, high dividend ETF strategies. “Investors can buy ETFs to get income from dividends, (often above what they could generate from individual stock picking), risk management for […]

Without a definitive monetary tightening plan from the Federal Reserve, we could be in for increased financial market volatility. Nevertheless, investors can still gain exposure to the upward moves in equities and limit the swings through low-volatility exchange traded fund strategies. Larry Fink, chief executive of BlackRock (NYSE: BLK), warned that global volatility will remain […]

Adding on to its extensive suite of alternative index-based exchange traded funds, PowerShares launched five new smart-beta strategies. Invesco Powershares, along with Dorsey, Wright & Associates, added the PowerShares DWA Tactical Sector Rotation Portfolio (NYSEArca: DWTR) Friday, October 9, according to a press release. DWTR follows DWA’s indexing methodology. Specifically, the DWTR acts like a […]

Three months ago to the day (6/30), I served up a list of reasons for lowering one’s exposure to riskier assets. I discussed weakness in market internals where fewer and fewer corporate components of the Dow and S&P 500 had been propping up the popular U.S. benchmarks. I talked about the faster rate of deterioration […]

We have been sitting through some wild market swings. However, investors can help dampen portfolio gyrations with low-volatility exchange traded funds strategies. “We believe the combination of slower global growth, uncertainty as to the Fed’s future path and less benign credit market conditions suggests that this period of heightened volatility is likely to persist,” writes […]

“He conquers who endures.” ~Persius Weak markets tend to make low volatility indices shine. As a strategy that attenuates the performance of the broader market, the S&P 500 Low Volatility Index had lagged the benchmark S&P 500 by 1.22% from the beginning of 2015 thru July 31. As of last Friday, the tide has shifted […]

Victory Capital, which acquired Compass Efficient Model Portfolios, has launched two new smart-beta international exchange traded funds that could provide more stable exposure to global stocks. On Thursday, the Compass EMP International 500 Volatility Weighted Index ETF (NasdaqGM: CIL) and Compass EMP International High Dividend 100 Volatility Weighted Index ETF (NasdaqGM: CID) began trading, according […]

This article was written by Nick Kalivas, a Senior Equity Product Strategist for Invesco PowerShares Capital Management LLC, a registered investment advisor that sponsors the PowerShares family of exchange-traded funds (ETFs). In the face of economic weakness and continued capital outflows, China devalued its currency, the yuan, on Aug. 11 and 12, fixing it a […]

This article was written by Matthew Dennis, senior portfolio manager for Invesco international/global growth products. International markets experienced increased volatility in the second quarter: Equity volatility rose by 19% in the US and by 50% in Europe.1 Notwithstanding a fade in equity volatility in July on the back of a perceived solution to the Greek […]